>> john: i'm a fan of ann curry -- [ overlapping speakers ] >> the last time i saw nbc news she was doing an inside report on honey boo boo. >> john: really quickfest movie? >> dark knight rises. >> probably lei mis -- speak >> john: life of pi in show with morgan spurlock, so keep an eye out for it this year. thanks to all of you. i really am honored to be made smarter by your presence, and we'll see you tomorrow. thanks, joy. >> good show, man. ♪

>> jennifer: i'm jennifer granholm. tonightt in "the war room," well at the end of the fight, the best way to figure out who won and lost is to look at who is smiling and who is not. and honestly i cannot remember the last time i saw john boehner even crack a grin. [♪ theme music ♪] >> jennifer: 24 hours after congress finally did something, the right-wing is up in arms! the reports headline was republican horror new year. scary stuff. and it only got spookier from there as republicans turned on their own. >> republicans caved last night. >> they waited 20 years before giving themselves away. >> i would be. >> seriously, could the

republican party have mismanaged this any worse. >> i think the president did a great job of getting the speaker to undo everything that he promised he would do. >> after midnight and all of that partying and rivalry that goes on at new year's eve, what i can tell you is they did half a bill. >> jennifer: not just the folks on the right who are whining and complaining, there are some on the left who are almost giving the tea party for dogmattic money. paul krugman wrote . . . >> jennifer: okay. i love paul krugman but on this

one i have to strongly disagree. let's take a look at what progressives actually got. first democrats got tax increases for the wealthiest americans. now that alone is a big deal because before this meal -- this meal -- before this deal lawmakers had not voted for a tax increase in two full decades. lawmakers on either side. the deal raises taxes on people making over $400,000 a year right? so $400,000 a year your taxes go up to 39.6%. all right. that by the way is a permanent change. now, wealthy investors are not going to be ability to wiggle out of paying their fair share because capitol gains taxes they

go up to 20%. not by 20%, but to 20% from 15%. the estate tax which is a tax on inheritance, the estate tax goes up to 40% from 35%. this deal also impacts those who are make a little less than $400,000 but still less than the average american people making between 250 and $400,000 a year won't be able to take as many deductions in the tax code. they will be limited for people under $400,000 but over $250,000. all of these moves make our tax code significantly more progressive. we're going to break this down

and make it easier for you. the demes also got help for the working poor and the middle class in this deal. here is how. the college tax credits are still preserved and extended for five years. in addition to that five years -- in addition to college tax credits, the child care tax credits also extended for five years. in addition to that for the working poor the earned income tax credit also known as the eitc that is also extended for another five years. unemployment benefits are also extended. that's ui unemployment insurance. that's extended for another 12

months. and remember that none of the cuts that republicans were demanding to pay for unemployment insurance, that didn't have to happen. and all of this is happening with no cuts to social security or medicare. no cuts. boom. they are preserved. pretty good right? there's more. and this one is for you renewable energy enthusists out there. the production tax credit has been extended for a whole year. that's a big deal and other kinds of renewables like biofuels energy efficient homes also got funded as well as research for renewables which again is something that clean energy advocates have been pushing for. those things are what democrats got. what did the republicans get?

well, not a whole lot. the debt ceiling was not resolved, so i suppose they got the ability to be able to still argue for cuts for the debt ceiling. so we'll put the debt ceiling in their camp because they can still hold the country hostage that way, and they also defeated -- you remember that president obama had asked for $50 billion for an infrastructure bank in his first ask? infrastructure bank. and they also got that taken off of the table. so essentially that's a win. they got that taken away. by the way the infrastructure bank would have been a great thing for this country. so we didn't get absolutely everything but looking at the whole balance sheet in a much neater way, folks, this is the scorecard.

all of these wins for the democrats and these wins for the republicans. hello? it is time to stop whining. despite what you are going to hear from some progressives this is not perfect, but no compromise is perfect. would we have loved to see the tax rate increase begin at 250,000 rather than 400,000? yes. would republicans loved to have cut social security and medicare? of course they would. but in the real world, ♪ you can't always get what you want ♪ but as the rolling stones once said you get what you need. i was advocating for going over the fiscal cliff, because it

seemed like it would be think only option but once mitch mcconnell got republican senator to agree to raise taxes, and john boehner allowed a vote in the house, when those things happen, this republican no, no no posture, resolved. at least an opportunity appeared. and once mitch mcconnell and john boehner stuck out their necks, of course president obama had to make a deal. he need to have a congress that he can work with. when one party steps out and asks you to the dance, you don't walk away unless you never ever want to dance with them again. that's what democracy is all about, compromise. even messy compromise. so we progressives we need to get real. anyone who demands purity is

just never going to get a deal. if you really want a perfect deal, then get more house progressives elected and make nancy pelosi speaker again in 2014. until then this is a step in the right direction. joining me now is michael tomski nice to have you back notice "the war room." >> nice to be here. happy new year. >> jennifer: happy new year to you. do you think progressives should be upset with this deal? >> no i'm with you the whole way. i'll make two points on policy on substance, the one thing that stuck out to me which you mentioned but went over a little bit quickly, the unemployment

insurance extend the republicans demanded no offset on that. ever since obama has been president, when they have extended unemployment insurance or done anything like that the republicans have said what is the offset? and to have gotten this without any offset with the republicans just saying okay. we're going to let this $30 billion go that's a very remarkable thing. my second point is a process point, but the idea that this passed the senate 89-8 with 40 of 45 republicans agreeing to a plan they knew had six points of democratic victory. i think barack obama is a little bit better negotiator that people on the left give him credit for. >> jennifer: i totally agree

with you. and it is important that the president work with this congress that is going to be taking over in a couple of days. because then the relationship could have been completely poisoned. >> it would have been completely poisoned and the stock market would have dropped today. it would have been bad news all the way around. and he is the president, governor. this is the thing. people look to him for leadership. they want him to take the lead and to get things done. and he has to get -- he has to push for a deal. i never bought this go over the cliff thing for exactly that reason. i understood that he would have more leverage on this side of january 1st, but i think from the point of view of the average citizen, they don't understand

that. he is the president. they want him to do something, and he did it. >> jennifer: just to let everybody know the dow closed up 300 points at the end of the day. >> there you go. >> jennifer: now there is a certain piece of this deal that doesn't seem to have fallen into either plus republican or plus democrat, which is the payroll tax increase that's going to happen. do you think that's a win for republicans? a win for democrats? a loss to both? does it matter? >> i think it's a loss to the economy. i think it's a loss to working people. it cannot be denied that everybody's taxes are going to go up by this 2%. they are not income taxes. it's a payroll tax, so it's in a slightly different basket so we don't talk about it in the same way, but a lot of liberal economists i know are kind of upset about this one, because

this was a form of stimulus that obama won in december of 2009 in negotiations with the republicans, so even though it was a tax cut, it was an obama proposal and something that obama wanted. and it turned out since the two years have passed a lot of democrats on the hill weren't so crazy about it. they feared defleeting the social security trust fund. so they weren't really pushing for it. so if leader of both parties were not crazy for it obama wasn't going to stick his neck out for it. >> jennifer: right. and it was adopted in the middle of a recession as envisioned to be a temporary tax increase. the final thing i would point out as we review how astonishing it was that republicans voted for a tax increase the last time this happened in 1993 with

bill clinton, he had democratic control of the house and the senate, and even then al gore had to come in and cast the deciding vote in the senate. so that's how amazing it is. it's pretty astonishing. michael because you wrote a bit about history today on this, and the recalcitrant ones throughout history that have always been there, i really appreciate your perspective. thanks for joining us again inside "the war room." >> always a pleasure. >> jennifer: you bet. he has become the ultimate political fixer. got a problem? don't worry. just let joe biden go in there and straighten some people out. plus it wasn't be the 112th congress if they weren't messing

something up. boehner's boyed failed to act on the bill to help very, very excited about that and very proud of that. >>beltway politics from inside the loop. >>we tackle the big issues here in our nation's capital, around the country and around the globe. >>dc columnist and four time emmy winner bill press opens current's morning news block. >>we'll do our best to carry the flag from 6 to 9 every morning. >>liberal and proud of it.

we have a big big hour and the iq will go way up. (vo) current tv gets the converstion started weekdays at 9am eastern. >> i'm a slutty bob hope. >> you are. >> the troops love me. (vo) tv and radio talk show host stephanie miller rounds out current's morning news block. >> you're welcome current tv audience for the visual candy.

just be grateful current tv does not come in smellivision. the sweatshirt is nice and all but i could use a golden lasso. (vo) only on current tv. >> jennifer: there must have been some tough talks behind the scenes of a fiscal cliff deal especially if what went on in front of the camera was any indication. take a look at this. >> it's being operated with a dictatorship of the speaker, not allowing the vast majority of the house of representatives to get what they want. >> jennifer: now speaker boehner didn't take kindly to the spade of his remarks, and responded with some choice words of his own. according to "politico," when

boehner met reid in the white house his first words to him were go bleep yourself, and that bleep started with an f. but look at it this way with this congress only crises really move the agenda forward. it's in crisis in the fog where you can do your best work. you look for inflection points as opportunities to move. it may be moving forward a lurch, and the process may not be pretty but great leaders take advantage of great crises to get things done. for more i'm joined by chris freight. chris welcome inside "the war room." >> hey it's good to be with

you. >> jennifer: so you were there. take us through the process of what really happened. >> the last 48 hours or so we got all of the action get kicked to the senate, and mitch mcconnell and harry reid were trying to come to an agreement that they could bring to the senate floor. and sometime about saturday afternoon, saturday evening, mitch mcconnell started to feel like after trading some offers maybe harry reid was slow walking him a little bit. we got into sunday and the majority leader said i don't -- i don't really have a counteroffer i can make to you at this point. and mcconnell takes to the floor and said the majority leader is not negotiating with me so i called joe biden, and i have this nice little scene. national journal did an exhaustive reconstruction of

these last few months. and mitch mcconnell is on the floor, and he is given a card that says hey there's a phone call for you. he picks up a phone in a phone booth, and it's the vice president. and he tries to persuade, joe biden, saying hey, i need a dance partner here would you come off of the sidelines. and he said you know the trip wire here. biden says let me get back to you with an offer. and that started the deal. >> jennifer: right so then it goes over of course to the house, and it looks like at first that the house is going to say hell no! we're going to send it back to you with amendments because we don't like that you don't have spending cuts. what happened on the houseside? >> we have john boehner, and he was letting his caucus event.

and it was an upset bunch, and there was a sense -- like you said there weren't spending cuts, they weren't going to vote for it. so boehner says we can run an amendment to put spending cuts on this bill but that might kill this deal and we might be left holding the bag for tax rate increases on all americans. he doesn't get the vote. so he puts the senate bill on the floor, and doesn't get quite half his caucus on board, but with democratic assistance was able to pass it through the house. >> jennifer: so this is the first bill that he has put to the floor without the majority of the majority supporting it. how significant is that? >> it is a big deal. because a lot of folks focused

on the idea that you need the majority of the majority. and it's very rare for a speaker to bring something that doesn't have the majority of the majority because they could be a coup. you had boehner and paul ryan vote yes, you had mccarthy and cantor vote no. and that was a clear skizam. >> jennifer: so i was assuming that that was a strategic decision that inside the leadership of the house republicans they agreed two one go one way, and two would go the other way. does that pose problems for boehner's leadership

potentially? >> i don't think so. i think he has the votes to become speaker, and this is something he has been dealing with for many many years now. and that's why he didn't bring his plan b up for vote because he knew he didn't have the support. >> jennifer: all right. thank you so much for joining us. >> thank you. >> jennifer: coming up after the break, an absolute disgrace and that's not the only republican going after their own. and a little later in the wake of the sandy hook shooting america is still pushing forororororororororororororororororororororororororororororor [ ryon ] eating shrimp at red lobster is a fantastic experience. 30 shrimp for $11.99. i can't imagine anything better. you're getting a ton of shrimp and it tastes really good! [ male announcer ] hurry in to red lobster's 30 shrimp for just $11.99! choose any two of five savory shrimp selections like mango jalapeño shrimp and parmesan crunch shrimp. two delicious shrimp selections on one plate! all with salad and unlimited cheddar bay biscuits.

30 shrimp, just $11.99 for a limited time. wow, that's a lot of shrimp. i'm ryon stewart i'm the ultimate shrimp lover, and i sea food differently. cook what you love and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work

to his last, which isn't rocket science. it's just common sense. from td ameritrade. ♪ today is the last day of the

112th congress and not a moment too soon. get this before adjourning last night, the gop-controlled house refused to bring up a $60.4 billion relief package to aid victims of hurricane sandy, and many politicians, even republicans are crying foul. >> for the continued suffering of these innocent victims. the house majority and their speaker, john boehner. we respond to innocent victims of natural disasters, not as republicans or democrats, but as americans, or at least we did until last night. >> jennifer: now criticism like that has prompted speaker boehner to change his tune. he now says that congress will take up that storm-relief package this week. coming us tonight from washington to talk about why congress did fail to act is

andrew krol a reporter with "mother jones." andy welcome back. happy new year. >> happy new year to you too. >> jennifer: stenny holder says that eric cantor told him that he was 99.9% sure that a sandy package would in fact make it to the floor. and this was before last night. what happened? >> these -- this relief package for the victims of hurricane sandy, focusing on the damage in new york and new jersey was expected to be handled last night amidst all of the fiscal cliff drama, and about an hour before midnight as far as we know house speaker john boehner pulled the vote on this. he quietly said there was going to be no vote. and chris christie tried to get in touch with the speaker. he called boehner four times, never got a response.

and really this was an 11th hour last-minute surprise. and that's why you saw so much anger. the worst of which were from republicans. and i think sort of the last-minute, surprising nature of this really set off all of these folks today. >> jennifer: so the question is why, andy? with not bringing that bill to a vote was that maybe boehner's way of reminding everyone that he is still in charge? >> there is also a shakespearean element if you will to these kinds of issues and drama within the speaker's office. i don't know how much or if it all boils down to boehner sending a message to cantor.

boehner said it didn't make sense to try to jam through a huge spending bill at the same time as they were passing this fiscal cliff compromise that had no major spending cuts. maybe boehner thought it was just too much at one time. maybe he was afraid of a complete revolt from his party -- >> jennifer: well it certainly didn't go over well. we have a sound bite of pete king from new york who has been going absolutely ballistic over this today. take a listen. >> these republicans have no problem finding new york when they are out raising millions of dollars. they are in new york all the time filling their pockets with money from new yorkers anyone who contributes one penny to congressional republicans is out of their minds. because last night they put a knife in the back of new yorker

and new jerseyians with absolute disgrace. >> jennifer: obviously peter king is not looking to switch parties, but do you think he would encourage a challenge against boehner? or is that just him being angry. >> well peter king's day-long revolt ended with a meter with john boehner today and congressman king came away from that meeting somewhat more pleased hearing that the speaker was going to bring up at least part of that spending package this week. it's a bill to be voted on on friday, and congressman king said he would continue to support speaker boehner, and really this was all a publicity stunt or just congressman king sleep deprived and incredibly

pissed off, trying to make a statement. >> jennifer: all i can say is you think $50 billion for hurricane sandy is going to be a problem, people need to consider what the cost is of all of these extreme water events that we're going to continue to see, because congress is the deep pocket that will continue to be asked for help. andy thank you so much for giving us a little bit of incite into the palace intrigue as you say. coming up as the newtown tragedy fades from alright, in 15 minutes we're going to do the young turks. i think the number one thing that viewers like about the young turks is that we're honest. they know that i'm not bs'ing them with some hidden agenda, actually supporting one

party or the other. when the democrats are wrong, they know that i'm going to be the first one to call them out. they can question whether i'm right, but i think that the audience gets that this guy, to the best of his ability, is trying to look out for us.

♪ >> jennifer: classes resume tomorrow for students at sandy hook elementary. a gunman killed 20 of their classmates and six adults and today students attended an open house in their new school in nearby monroe connecticut. on this week's meet the press, the president said this issue would be a cornerstone of his

second-term agenda. >> obama: i think anybody who was up in newtown who talked to the parents and families understands that something fundamental in america has to change and all of us have to do some soul searching, including me as president, that we allow a situation in which 20 precious small children are getting gunned down in a classroom, and, you know, i have been very clear that, you know, an assault rifle ban, you know, banning these high-capacity clips, background checks, that they are a set of issues that i have historically supported and will continue to support. >> jennifer: so can president obama coddel together enough support to enact meaningful gun legislation. joining me is joe williams who

is in washington, and with me here in the studio is donnie fowler the ceo and founder of san francisco-based dog patch strategies. thanks for being here. >> thanks for having me. >> jennifer: joe it isn't just republicans who have been against gun safety laws even democrats like bob casey has balked at new laws in the past but he now said the newtown shootings made him reconsider. joe, do you think we'll see more pro-gun democrats evolve? >> i think you will. you also have joe mansion a democrat of west virginia who said that even thinking about what hand in newtown has caused him to rethink his position about gun safety. and you have a guy who shot a

gun in a campaign ad. he won in a state where guns -- there's a lot of fishing and hunting culture there. so that's a big major step in the other direction. >> jennifer: let me jump in on that, because donnie really can anything get past on gun safety in this congress? >> the pro-gun people think the best thing to do here is just watch and wait. this is not the first school shooting. it's not the first mass killing. and every time the nra has come out ahead in the last 20 years, and they have just watched and waited. so you don't see them actively pushing every day on this. and they were silent for the first week -- >> jennifer: but he really goofed it up when he came out. that's right. >> jennifer: joe if the

president is behind it he said in the meet the press interview, and other places that one of his first priorities is going to be this gun safety legislation, if the president really pushes it joe, can he get it through congress? >> it's an open question for a couple of different reasons. you will have the bully pulpit of the president behind it. that's different. but secondly you have got diane feinstein who one would remember historically was there in san francisco when harvey millford was shot. and she is pushing legislation to ban high-capacity magazines, ban assault weapons, and require extensive background checks everything the president said she wanted. and she is no slouch when it comes to senate policy. she has been there a very long

time, and has a lot of power behind her. >> she was the author -- [ overlapping speakers ] >> again, you do have the filibuster majority in the senate -- >> jennifer: well, let's talk about that. donnie, the second-term agenda includes immigration reform climate change legislation, knock on wood and includes getting the fiscal house in order. >> and jobs jobs jobs. >> jennifer: yes. but if we get filibuster reform will the president be able to get his agenda through, or will the house block everything? especially guns? >> the question is whether they are going to have to step in and save the children that they have become. speaker

speaker boehner needs to ask himself does he want to cow town to this group in the house who wants to hold everything hostage for idealogical reason. >> jennifer: yes i think their agenda of blocking tax increases for millionaires and everything else is going to hurt them politically. >> one thing at a time they are good at two things at a time they are not. in a few months we'll go through the debt ceiling again. republicans are holding the government hostage. >> jennifer: we'll see if there is an opportunity for the president. joe and donnie are going to stick around. after the break we'll hear some despicable comments that we have learned

hershey's simple pleasures chocolate. 30% less fat, 100% delicious.

♪ >> jennifer: all right. what do cenk uygur and the rest of the "young turks" about by the fiscal cliff deal? we'll find out at the top of the hour, but cenk are you celebrating the fiscal cliff or lamenting? >> first of all, jennifer [ inaudible ]. [ laughter ] >> what you were the governor of michigan. >> jennifer: i know all about it. listen. >> okay. anyway -- >> jennifer: anyway. >> on the fiscal cliff, yeah we have a little difference of agreement, but that's why i love your show following mine -- >> jennifer: you are following me now. >> i know that's true. >> jennifer: no, i think that this was a great deal but you

obviously -- i was predicting that you would have a different take. >> you are absolutely right. i did not like the deal at all. and i'll explain why i didn't. we have a congressman on that voted no and i'll tell you why. he had really strong words about joe biden to. >> jennifer: wow. >> he was not happy. >> jennifer: he is obviously wrong about that too. [ laughter ] >> all right. fair enough. >> jennifer: all right. cenk i'm looking forward it to i'll probably disagree with you, but i encourage everybody to watch cenk uygur and "the young turks" following "the war room." thanks cenk. >> thank you, governor. >> jennifer: i am happy to report that secretary of state hillary clinton has been released from the hospital this evening.

but i want to play a few clips. >> you know i'm not a doctor but it seems as though the secretary of state has come down with the benghazi flu. >> did she really have a concussion? >> a little ice pack on the head you know? you can answer the questions. >> jennifer: of course as we now know secretary clinton's concussion lead to a very serious blood clot near her brain. it would be nice if those who so openly mocked her would openly apologize to her. secretary clinton was planning on leaving her post and how might america's foreign policy change with senator kerry at the helm? and what can we expect from a second obama term and a new

congress. back with us is joe williams and donnie fowler. donnie let me start with you about secretary clinton. >> you got to wonder who had the concussions. >> jennifer: that's a good point. >> the right-wing has just -- >> jennifer: they have got a brain -- i won't say it. and they should apologize, but let's talk about the underlying issue, her moving on and john kerry stepping in. >> what a great choice. >> jennifer: he is a great choice. he does haven't the star power that hillary clinton does although he did run for president. >> he is also a decorated war veteran, and his agenda has already been clear, and since he lost the presidency just by a hair a few years ago, he is focused on three things. counter terrorism, clean energy

and improve the problems in the middle east because of the iraq and afghanistan war. >> jennifer: that brings me joe, to the second-term kind of issues with people that the president will be dominating. senator kerry will be an easy confirmation in the senate. there are others that might not be -- we know what happened with susan rice and we know he is maybe experiencing trouble with [ inaudible ]. if there is not filibuster reform, what do you expect? >> i think there is going to be a lot of obviscation. they were successful against susan rice. they welcome john kerry with open arms but they have a

problem with john kagel. what more concerns me is we could have at least two supreme court vacancies come up possibly more and what does that mean for the right-ward drift of the court? we're not going to get from what i see a progressive voice to try to connect the course of the supreme court and try to anchor down some of the long-term changes that we have had. we're going to be hearing about the voting rights act coming up before the supreme court later on this summer. and that is going to be a lot larger than any cabinet nominees -- >> and chief justice will be around for a while. >> jennifer: absolutely. what is going to be the big

success for president obama in the second term? >> he has momentum and currently the upper hand. the fight will be very very dirty, and protracted because that's what republicans want. another issue is immigration. the president has promised to do something about clean energy drawing the u.s. toward a cleaner energy economy, while creating as much energy as possible here at home. >> jennifer: if you were to pick one issue that he will be known for? >> immigration. >> jennifer: interesting. joe i want to get your take on that next time because apparently we have just run out of time. >> no problem. >> jennifer: all right. up next brand new year same

old brett ehrlich. he has figured it [ male announcer ] pillsbury grands biscuits. delicious. but say i press a few out flat... add some beef sloppy joe sauce... and cheese fold it all up and boom! i just made an unbeatable unsloppy joe pillsbury grands biscuits. let the making begin. [ female announcer ] what would you call an ordinary breakfast pastry that's been wrapped in a flaky crust stuffed with a gooey center toasted up all golden brown then given a delicious design? a toaster strudel. pillsbury toaster strudel. so delicious...so fun.

[ ryon ] eating shrimp at red lobster is a fantastic experience. 30 shrimp for $11.99. i can't imagine anything better. you're getting a ton of shrimp and it tastes really good! [ male announcer ] hurry in to red lobster's 30 shrimp for just $11.99! choose any two of five savory shrimp selections like mango jalapeño shrimp and parmesan crunch shrimp. two delicious shrimp selections on one plate! all with salad and unlimited cheddar bay biscuits. 30 shrimp, just $11.99 for a limited time. wow, that's a lot of shrimp. i'm ryon stewart i'm the ultimate shrimp lover, and i sea food differently.